Friday, 11 Dec 2020 05:28 PM MYTLONDON, Dec 11 — The Bank of England said today it would review the test that borrowers must pass if they want a mortgage, raising the prospect of obtaining home loans more easily.
The assumption of such a jump in rates has now become more questionable due to the very low BoE base rates and a global fall in borrowing costs. The BoE’s Financial Policy Committee said it would review how the test is calibrated and report its conclusions next year. “This suggests that households’ capacity to service debt is more likely to be supported by a prolonged period of lower interest rates than it was in 2014,” it added.
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